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Bangladesh has the potential to raise its readymade garment export earnings up to US$60 billion by 2030 provided with diversification within the garment items mostly non-cotton based.
Besides, an additional US$22.5 billion could be earned from exports of major non-RMG products by that time.
The projections were made at a programme held Monday at a city hotel jointly organised by Research and Policy Integration for Development Bangladesh (RAPID) and Friedrich-Ebert-Stiftung (FES) Bangladesh Office.
Speaking there, Dr MA Razzaque, chairman of RAPID, said, "Bangladesh’s share in cotton fibre garment to the EU is 34.7 per cent while China’s share is only 14.9 per cent."
On the other hand, China’s share in non-cotton garment items to the EU is 41.2 per cent while Bangladesh’s is only 12.2 per cent.
So, here Bangladesh has the potential to explore more markets to the EU if Bangladesh can diversify the products within the garment items, he added.
Mr Razzaque was presenting a study on ‘Exploring Export Diversification Opportunities in the European Union’ at the event.
Bangladesh’s apparel exports to the EU is projected to rise to $46 billion to $60 billion by 2030, Razzaque said in the study.
Sourcing diversification away from China may help Bangladesh’s RMG export growth.
Moving towards MMF can be greatly facilitated by extended EU preferences beyond LDC graduation, he said.
Estimations are based on current supply side capacity demand condition and market access condition.
Non-apparel products with high export potential include footwear, leather goods, home textiles, and fish and shrimp.
With the imminent LDC graduation, the urgency for export diversification has never been more pronounced, the study said.
The EU market, with its vast consumer base and historical trade ties with Bangladesh, can act as a catalyst, it added.
However, along with the dominant role of the garment sector in Bangladesh’s exports, its potential for expansion remains vast, especially as China’s share in the global market, including in the EU dwindles.
Senior Commerce Secretary Tapan Kanti Ghosh and EU Ambassador to Bangladesh Charles Whitely also spoke there.